M Pharmaceutical (CSE:MQ) surged 25 percent after the company said it closed an oversubscribed private placement financing, raising a total of $875,000 in new funds.
It issued 43.75 million units at a price of 2 cents apiece. Each unit is made up of one common share and one share purchase warrant. Every warrant can be used to buy an additional common share at a price of 5 cents, for a period of one year after closing.
The company said the proceeds would be used for expenses tied to the acquisition of the rights to the eMosquito blood sugar monitoring device, and other testing and development costs.
M Pharma in December signed an arms-length agreement to acquire and commercialize the rights to the eMosquito. The device is being developed as a less invasive way for diabetics to take blood samples for glucose level checks, by penetrating the skin to shallower depths, in less sensitive areas of the body.
Currently, diabetics prick their fingers to monitor their blood glucose levels, which can be painful. The eMosquito, however, is designed to be worn like a patch, with small needles to puncture the skin just deep enough to draw blood without damaging any nerves, causing little or no pain at all.
The idea behind the technology is to have a cuff-based device that automatically draws whole blood samples and monitors blood sugar levels on a regular basis. The medical product is composed of at least six single-use needles that "bite" sequentially at pre-programmed levels.
A commercial strip-based sensor associated with each needle will then measure glucose levels, with the data to be sent wirelessly to a remote device such as a smartphone. The patient need only replace the needles and the strips once every day.
News of the licensing deal followed the company's decision in June to sell its rights to an oil and gas prospective reconnassiance contract on the Beni Znassen block in Morocco to Maxim Resources. M Pharmaceutical changed its business focus shortly after the sale, with the company formerly known as First Sahara Energy.
Shares of M Pharamceutical made its debut on the Canadian Securities Exchange under its new name and ticker symbol in late January, and is currently trading at C$0.025.